Europe · Tax guide
Monaco
Monaco charges profits tax (ISB) at 25% only on companies that earn more than a quarter of their turnover outside Monaco, or from patents and royalties. VAT follows the French system at 20%, and taxes are administered by the Direction des Services Fiscaux.
At a glance
- Profits tax (ISB)
- 25%
- VAT
- 20%
- VAT franchise for services
- €37,500
Only for some companies
French VAT rules
Small service businesses
Profits tax (ISB)
Most Monaco businesses that trade locally pay no profits tax. ISB at 25% applies to companies earning more than a quarter of their turnover outside Monaco, and to income from patents and literary or artistic property. Monaco has no general personal income tax, except for French nationals.
VAT
Monaco forms part of the French VAT area, so VAT is 20% under French rules, with the same reduced rates. Small service businesses with turnover below €37,500 can use the VAT franchise.
Key dates
- Monthly or quarterlyVAT return
- After the year-endISB return (companies within scope)
Figures and sources
3 figures- Profits tax rate (ISB)25%Under professional review
- Standard VAT rate (French VAT regime)20%Under professional review
- Turnover below which small service businesses can use the VAT franchise€37,500Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Monaco based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Monaco (a Monaco chartered accountant) before making compliance decisions.